Bernhard, how much house can I finance? Please help me to get a good house financing with which I can buy my dream house. How much house can I afford? Income, expenses, budget math, and what really matters to get the best financing.
How much house can I finance?
The good news beforehand. I have here for you a simple real estate financing calculator will help you to optimize your construction financing.
Your monthly monthly payment
House financing without equity
How you can get more money from your bank with every single Euro you spend. What you need to consider when applying for full financing and how you can successfully get low-cost home financing with no equity.
No matter whether you want to finance a new building, or you want to finance a new apartment. Start right now with a simple financing calculator and find a list and selection of current offers. Take 2 minutes and learn how you can get the best house financing.
And even before, a quick comparison of construction financing, with a clear overview of current interest rates and offers.
Construction financing comparison
How much house can I afford?
The financing of your house purchase depends primarily on your personal financial situation. The following factors should be considered.
- Income
- Spend
- Equity
- Budget calculation
Consideration of the net income
Very often, borrowers think that a high income will automatically ensure that they receive higher financing from banks. And that you can basically afford more house with higher income.
However, this belief is a misconception. The amount of income clearly plays an important role in a house financing. But income alone can impossibly be used as the sole financing factor.
Quite the opposite. Any income must be compared to expenses. A simple example. Hans Huber earns €150.000,- per year. After deducting all taxes, health insurance, etc. calculator Mr. Huber that he has a monthly net salary of €7000,-.
A considerable high monthly income, with which Mr. Huber believes to be able to receive a nevertheless very high house financing.
In comparison, Max Meier is trying to obtain favorable home construction financing. Max is a carpenter by profession, and his annual income is €46.000,-. After deducting all taxes, Max has a net income of around €2.600.
If you compare these examples, you might think that Mr. Huber, who clearly earns more than twice as much, should receive much more financing from banks.
Take into account the expenses
However, this cannot be determined with the exclusive comparison of incomes, because decisive for the computation how much house I can lesiten, is also the fact that all expenditures must be considered.
Mr. Huber's life situation is completely different from Mr. Meier's life situation. And after a simple comparison of income and expenses, it very quickly became apparent that Mr. Huber has a smaller monthly budget available than master carpenter Meier.
How can this be? Mr. Huber's life situation is a completely different one compared to the young carpenter Mr. Meier. Mr. Huber is 45 years old, divorced, three children, alimony payments, and outstanding receivables from an existing financing arrangement. Existing debts on cars, generally higher lifestyle expenses, for family, costs to insurances, etc.
Meanwhile, the young carpenter Max Meier is single, he still lives free of charge in the house of his parents, has no children, no alimony payments, no outstanding debts. And after a simple comparison of all his income and expenses, the young carpenter has more money available at the end of the month than Mr. Huber.
Budget calculator
From this simple example we learn that a monthly net income alone is not decisive for which financing framework one qualifies for. How much house you can afford really depends on your budget bill.
The budget does not only take into account the income, but also compares all expenses including all outstanding receivables.
How expensive can my property be?
By calculating the budget, it becomes apparent how much money one has for home construction financing. This allows you to calculate in consequence how much house you can afford.
It is also advisable to always have a small financial security cushion. To take into account unforeseen expenses, so that you can avoid possible difficulties with repayment installments.
Can I finance a home with no equity?
The good news first. Under certain conditions it is also possible to finance one's home without equity capital. How one can get a full financing, with which banks one can make this request and a selection of different banks find you in my contribution dwelling finance without own capital funds.
How much may the property cost?
Once you have made your budget calculations and calculated your monthly budget, you know how high the monthly repayment rate can be. However, this still does not determine how much house you can finance with it.
Banks have different offers. And if you want to use every single euro, then it is also important to be tough as nails and compare as many financing offers as possible.
How much equity do I need to buy a house?
- The higher the equity, the higher the chances of loan approval
- 20% equity is required by most banks
- a house construction financing is also possible without equity capital
- Offers from banks with full financing can be considered
How much should my equity be for a home construction financing?
20% equity is recommended by most banks for a house construction financing.
How much credit do I get with €1000 installment?
With current interest rates of 3%, term 20 years, €1000 monthly installment you get €270.000,- Euro.
How much is my construction loan with €1000 rate?
The brewery loan sum is €270.000,- with a current interest rate of 3% and a term of 20 years.
How much money do I need to finance a house?
The budget needed to finance your home, is calculated from your income minus your expenses. The calculated amount forms the budget. The purchasing power you have to make the monthly repayments on a home loan.
How much money you have to earn to finance a house?
Calculation: Your monthly net income minus expenses forms the budget you have to finance your house.
How long does it take to get a €100.000 euro financing to pay?
With interest of 3%, and a repayment installment of monthly €1000, – it takes 10 years to €100.000,- to finance.